Virtual couponing method and apparatus for use with consumer kiosk

ABSTRACT

A method and apparatus for distributing, generating, and redeeming discount Virtual Coupons™, rebate or gift certificates or the like which may be used on conjunction with a frequency card program or the like. Virtual Coupons™ may be distributed electronically, for example, in the form of a diskette or CD-ROM software. Software on the diskette or CD-ROM may prompt a consumer to call a  1 - 800  number for a validation number or code. During the phone call, telemarketing personnel may request consumer demographic and or identification information which may be entered into a centralized database. Once the software is validated, a consumer may print out a list selected Virtual Coupons™ displayed on a Graphical User Interface (GUI). When a product is purchased, the UPC code of the product may be compared electronically with a list of Virtual Coupons™ authorized for a particular consumer. An appropriate coupon discount may then be applied and the Virtual Coupon™ may be considered “redeemed”. Once redeemed, consumer ID information and Virtual Coupon™ information may be retrieved electronically and used to update a central database. Accurate data may then be produced illustrating which consumers or groups of consumers are redeeming which Virtual Coupons™. Such data may be used for marketing purposes or to generated further diskettes for distribution targeting specific consumers or groups of consumers with specific classes of Virtual Coupon™ offerings. The use of Virtual Coupons™ eliminates or reduces fraud, and allows a frequency card discount to be applied only a limited number of times.

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] The present application is a Continuation-In-Part of copendingU.S. patent application Ser. No. 08/630,330, filed Apr. 10, 1996,entitled “VIRTUAL COUPONING METHOD AND APPARATUS” (incorporated hereinby reference) which in turn is a Continuation-In-Part of U.S.application Ser. No. 08/491,367, Filed Aug. 19, 1995 entitled “ELECTRICCOUPONING METHOD AND APPARATUS”, (incorporated herein by reference), nowU.S. Pat. No. 5,710,886.

FIELD OF THE INVENTION

[0002] The present invention relates to an apparatus and method fordistributing, generating, authenticating, and redeeming discount couponsand the like electronically. The method and apparatus of the presentinvention may also be used for tracking marketing data using electroniccouponing techniques.

BACKGROUND OF THE INVENTION

[0003] Discount coupons and the like (e.g., “cents off” coupons, rebatecoupons, special offer coupons, or the like, collectively referred toherein as “coupons”) have become an integral part of marketingstrategies for many products, particularly retail consumer goods,sundries, foodstuffs, hardware, clothing, and the like, typically soldat local grocery, drug, and discount stores. Product manufacturers havecome to rely upon coupons, rebate and gift certificates or the like topromote new and existing products, boost sales, and obtain demographicinformation concerning consumer buying patterns. Consumers have come torely upon coupons or certificates as a technique for reducing costs.

[0004] Prior art couponing techniques have had several disadvantages,not the least of which are low response rate and fraud. In the priorart, coupons may be distributed using direct mailing techniques, printedin newspapers, magazines, or the like, distributed with other commercialgoods (e.g., laundry soap coupon packaged with washing machine), ordistributed (e.g., by original equipment manufacturers or OEMs) with thesame or like goods, computers or the like (e.g., “cents off” toward nextpurchase). Such techniques require massive amounts of printing anddistribution, and historically have a low response rate (e.g., typicallyless than 2% of coupons distributed are redeemed). Thus, suchmass-distribution techniques may not be cost effective, and are notenvironmentally friendly, due to the large amount of paper wasted.

[0005] Such low response rates may be due in part to the difficulty aconsumer may have in maintaining, cataloging, and finding appropriatecoupons before shopping. A particular consumer may have at his or herdisposal only those coupons which have been sent to him or her and havebeen retained by the consumer. Moreover, since many coupons haveexpiration dates, a consumer may have to carefully catalog each couponto insure that it is redeemed before such an expiration date occurs.Such techniques are time-consuming and cumbersome. Generally, only thoseconsumers on a budget or those who use couponing as a hobby havesufficient time to maximize their use of available coupons. Busier andmore affluent consumers may not believe that such coupon managementtechniques are cost effective. This latter group of consumers mayrepresent a more desirable demographic for a product manufacturer toattract or track.

[0006] With the advent of double or even triple redemption couponingpromotions provided by some retail stores (e.g., grocery store chain orthe like) as well as generous cash rebate coupon promotions (i.e., giftcertificates or the like), fraud had become an every increasing problemin coupon marketing. Color photocopiers may create coupons which areindistinguishable from originals. Unscrupulous consumers may use suchcopied coupons to purchase large numbers of items at reduced prices orfraudulently obtain rebates for products which were never purchased.Moreover, some unscrupulous retailer may conspire with coupon brokers toredeem large numbers of illicitly obtained or generated to defraudmanufacturers.

[0007] As coupon discounts or rebates may be used for promotionalpurposes, the resulting net price to the consumer with such a discountmay be less than the product manufacturer's wholesale price. A productmanufacturer may offer such steep discounts in the hope of obtainingfuture sales at full retail prices. If a consumer uses a photocopiedcoupon for multiple purchases of a retail item, the product manufacturermay not obtain the desired repeat sales at full retail price, and theentire scheme of couponing may be defeated.

[0008] In addition, prior art couponing techniques have yielded little,if any, useful data to product manufacturers regarding who is redeemingsuch coupons. Consumer demographic data is invaluable to a productmanufacturer in determining which products to target to particularconsumer groups (e.g., through particular advertising venues). Moreover,such demographic data may be used to more efficiently distribute futurecoupons. In addition, information as to the buying habits (i.e.,recency, frequency, and monetary value or RFM) and demographics ofparticular consumers or groups of consumers has a market value and suchinformation may be sold or traded for a profit.

[0009] Various techniques have been tried to eliminate or reduce fraud,provide more convenient techniques for distributing coupons, and tobetter track consumer demographic data.

[0010] De Lapa et al., U.S. Pat. No. 5,353,218 discloses a focusedcoupon system. FIG. 6 of De Lapa et al. is most illustrative. De Lapa etal. discloses a system for distributing coupons with a machine readablecode (barcode) containing both customer and coupon identifications. Theconsumer code may be replaced with a generic code used in a look-uptable for coupon verification and information. The entire machinereadable code may be captured and uploaded to a central database fordetermining coupon and consumer identification. The uploaded informationmay be used for marketing purposes (to determine which coupons to nextsend to the consumer) and/or for rebate purposes.

[0011] Although the system of De Lapa et al. attempts to provide a morefocused distribution technique, the system still relies upon papercoupons being distributed to consumers. Consumers may throw out suchmass mailings (i.e., “junk mail”) without opening them. Moreover, thesystem relies upon the consumer supplying demographic information in aquestionnaire or the like in order to be provided with the coupons.Moreover, since the coupons of De Lapa et al. are preprinted, coupontrading or copying may be more prevalent.

[0012] Furthermore, in De Lapa et al., no mechanism is present forcapturing subsequent demographic information. In addition, as consumerdata is captured at the store level, an additional mechanism may berequired to upload such consumer information to a centralized databaseto capture consumer demographic information. Additional data processinghardware/software may be required at a retail store in order to processsuch data. Thus, retailers may be initially reluctant to invest in sucha scheme.

[0013] In retailing, it may be essential to check out consumers in aslittle time as possible. Thus, if additional processing time is requiredduring customer check-out to process the coupons of De Lapa et al.retailers may be less likely to accept adopt such technologies.

[0014] Moreover, under the scheme of De Lapa et al., there is nomechanism provided to insure that the individual who receives thecoupons is the targeted individual. If a consumer moves to a newaddress, new occupants at the old address may receive and redeem couponsaddressed to the consumer. Thus, target tracking data may be inaccurateor incomplete.

[0015] Murphy, U.S. Pat. No. 5,305,195, issued Apr. 19, 1994, disclosesan interactive advertising system for on-line terminals. A series ofremote terminals receive compressed and encoded video advertisingsignals which may be stored on an internal hard drive. The advertisingvideos are played, and a consumer may select products using theterminal. In FIG. 4, (Col. 7, lines 45-50) Murphy discloses that aprinter may be provided for printing selected coupons.

[0016] The apparatus of Murphy may solve some of the problems associatedwith distributing coupons in paper form. However, The Murphy systemappears to be more concerned with directing advertising information thancollecting demographic information or distributing coupons. Thus, itdoes not appear that the apparatus of Murphy is equipped to processdemographic information or reduce coupon fraud. Moreover, Murphydiscloses his apparatus for use in college campuses, a limited andnarrow consumer demographic.

[0017] Von Kohorn, U.S. Pat. No. 5,128,752, issued Jul. 7, 1992discloses a system and method for generating and redeeming tokensselected from television data. Product information and authenticationdata may be transmitted and displayed on a television and a homeprinter. A viewer may select a coupon for printing and redeem the couponat a retail store.

[0018] Von Kohorn does disclose a technique for reducing fraud (Col. 7,lines 16-38). However, it appears that these techniques require actionat the retail level to verify that a coupon is indeed legitimate,including, in one embodiment, requesting identification credentials fromthe consumer. Such techniques may be intrusive and cumbersome to use ina retail establishment where a number of coupons may be redeemed at anygiven time.

[0019] Moreover, it does not appear in the system of Von Kohorn, whichrelies on broad-casting, does not target specific consumers withparticular coupons. Rather, it appears that the coupons are distributedto all viewers equipped with the appropriate apparatus. Note that inFIG. 6 (Col. 9, lines 40-48) Von Kohorn discloses a technique forrecording marketing data from consumer information encoded into thecoupon.

[0020] Axler et al., U.S. Pat. No. 5,305,197, issued Apr. 19, 1994,discloses a coupon dispensing machine with feedback. A consumer kiosk isplaced in a retail establishment or the like to display advertising (LEDscroll) and allow customers to print out selected coupons. A proximitysensor detects the presence of customers near the apparatus.

[0021] The Axler device may solve some of the problems associated withpaper distribution of coupons. However, it does not appear that theAxler device may retrieve any significant amount of consumer demographicdata other than the number and type of coupons printed. Moreover, withinthe in-store environment, it may be difficult to enter such consumerdata, particularly with the keypad disclosed by Axler. Thus, it does notappear that the Axler device may be suitably adapted to retrieveconsumer demographic data.

[0022] A fundamental fault with the Axler device is that it does notappear to target or prior motivate customers with to visit a retailerwith specific coupons. Rather, the in-store location of the Axler devicemay facilitate a consumer “targeting” a coupon. In other words, aconsumer may make a number of product selections in a store and thenvisit the coupon kiosk of Axler to determine whether any purchases aresubject to coupon discount or rebate. Thus, the fundamental goal ofcouponing—to motivate a consumer to purchase a product—may becompromised.

[0023] In addition, the kiosk of Axler may occupy valuable commercialretail space. In a retail store (e.g., supermarket or the like) even afew feet of shelving may be extremely valuable for displaying andcontaining retail merchandise. Product manufacturers may even pay “rent”to a retail establishment in the form of rebates or promotional fees inorder to obtain prominent shelf space. Thus, a retail establishment maybe loathe to give up such valuable space to a couponing kiosk. Moreover,it may be time consuming and frustrating for customers waiting in lineto access the kiosk. Providing additional kiosks may becost-prohibitive.

[0024] Tai, U.S. Pat. No. 4,908,761, issued Mar. 13, 1990, and assignedto Neighborhood Marketing Corporation, describes a system foridentifying heavy product purchasers who regularly use manufacturers'purchase incentives and predicting consumer promotional behaviorresponse patterns. Delivery of coupons to selected consumer householdsalso includes the use of a plurality of consumer activated codingdevices (bar coded stickers) which may be attached to the coupon. Thebar coded sticker indicates the name and address of the receivingconsumer. When the coupon is redeemed and read, data may be collecteddetermining which consumers of the selected consumer households redeemedwhich products, as well as size and price of the product purchased.

[0025] One disadvantage of the sticker system of Tai is that it requiresa consumer to go through the laborious task of affixing stickers toindividual coupons manually. Thus, the technique may not reach beyondthe traditional coupon-clipping demographic. Product manufacturers maybe more interested in the buying habits of more affluent purchasers, whomay be less inclined to spend time affixing stickers to coupons.

[0026] Moreover, the device of Tai does not appear to address the datareliability problem in the couponing business. Once a sticker isattached to a coupon, it may be redeemed. Thus, coupons with stickersattached may be sold, traded, or swapped with other coupon aficionados,and thus true demographic data may be lost or inaccurate. If the personredeeming the coupon is not the targeted consumer, the preference forthat product, inferred from the coupon redemption, may not reflect thepurchasing desires of the target consumer, but rather that of anotherperson.

[0027] The Tai system appears to some features which may be used toassist in fraud detection. For example, by applying a sticker to thecoupon, it may be more difficult for an individual to photocopy a couponfor subsequent re-use. If a coupon is photocopied with the sticker inplace, the resultant copies may be more readily detectable as fraudulentdue to the lack of a real sticker being present. Moreover, as thesticker may indicate a consumer name, it may be possible to trace suchfraud or at least discourage such fraud, as the consumer will know thathis or her name is attached to the coupon.

[0028] However, as present coupons do not use stickers, it may bepossible that a checkout person may not detect a fraudulent coupon(e.g., photocopied sticker) and thus the coupon may be redeemed. Onceredeemed, it may be difficult to prove a particular consumer cashed aparticular coupon. Moreover, coupon fraud may not be limited toconsumers alone. Store owners, managers, and distributors may attempt tofraudulently replicate coupons for redemption. Thus, a consumer mayredeem a stickered coupon, only to have it copied by an unscrupulousperson in the redemption chain. Falsely accusing a consumer of couponfraud could backfire and lead to potential legal and public relationsproblems for manufacturers.

[0029] Moreover, the Tai system still relies upon paper coupons, whichmay be difficult to count, sort, and redeem. Consumers may be adverse tousing paper coupons, as such coupons may be difficult to cut out,handle, and store. Redemption and counting of paper coupons may be atime consuming and laborious task, both at the retail level, and atcoupon clearing houses. Moreover, paper couponing techniques may be muchmore prone to fraud due to counterfeiting.

[0030] Many grocery stores have in place so-called “savings clubs” orfrequency programs. For example, the Safeway® chain of retailsupermarkets distributes a “Savings Card” to consumers. For the purposesof this application, such cards may be referred to as “frequency cards”.A frequency card may comprise a combined check cashing and discount cardprovided with a magnetically encoded strip. Once a consumer has checkedout at a grocery or other store, the card is read by a magnetic reader.Data from the card verifies the identity of the consumer for checkcashing purposes, if required. Moreover, the consumer identification mayalso be stored, along with data indicating which products werepurchased. In addition, special “in-store” or advertised promotionaldiscounts for selected products may be applied to reduce a consumer'stotal bill.

[0031] It should be noted that the use of debit and credit cards forretail grocery shopping has increased dramatically. Retailers prefer theuse of such cards, as they reduce the incidence of bad check charges andthe like associated with conventional payment methods. Moreover, use ofdebit and credit cards reduces the amount of cash received, thusreducing opportunities for internal theft and making stores lessattractive robbery targets. Thus, for the purposes of this application,the term “frequency card” may be construed to include credit and debitcards and the like.

[0032] Such frequency cards may be very useful in collecting consumerdemographic data. However, such cards may have some drawbacks whenattempting to promote individual products. For example, if a consumer isaware that use of the card will result in automatic deduction ofpromotional discounts from his or her total bill, then the consumer mayautomatically use the card without consciously choosing the promotionalitems first. Any savings due to promotional discounts may be viewed bythe consumer as windfalls, rather than planned strategic buyingdecisions. Product manufacturers and distributors may instead wish toalert a consumer to specific promotional discounts to motivate consumersto look for particular products when visiting a store.

[0033] Thus, it remains a requirement in the art to provide afraud-resistant, easy-to-use, paperless technique and system forinducing consumers to shop for particular products to obtain particulardiscounts while simultaneously capturing consumer discount redemptiondata.

SUMMARY AND OBJECTS OF THE INVENTION

[0034] In a method and apparatus for distributing and generatingcoupons, a database is generated comprising at least a list of consumernames and addresses. A package of data for a selected group of consumersis generated for the consumers on the list. The package of data includescoupon data. The package of data is transmitted to the selected group ofconsumers from the list. Demographic and identification data receivedfrom a consumer from the selected group of consumers may then enteredinto the database. A validation code may then transmitted to theconsumer's computer so as to allow the consumer's computer to generate acoupon list from the coupon data in the package of data. A coupon listmay then be generated from the consumer's computer in response to aconsumer selection, from the coupon data in the package of data.

[0035] A consumer may then redeem coupon values listed on the couponlist by presenting the purchase items, along with a consumer card(preferably an existing frequency card) at a checkout register.Alternately, the coupon list may be provided with a bar code or thelike, which may be read at check-out and used as a temporary frequencycard. In yet another embodiment, a bar code on the virtual coupon listmay be scanned and used to trigger mailing of a frequency card to theconsumer.

[0036] Coupon discounts may then be applied automatically using aretailer's point-of-sale device. The number of discounts being offeredmay be suitably appended and consumer data captured internally. Theprocess eliminates the need for any additional back-room paper handlingand would virtually wipe out the possibility of internal and/or externalfraud. The couponing process of the present invention would offer boththe retailer and manufacturer a fully automated audit trail.

[0037] The package of data may be transmitted to a consumer's computerby diskette, on-line or dial-up. The number of times a consumer hasredeemed a given coupon discount may be counted to indicate fraud if thenumber of times a coupon is redeemed by the consumer exceeds apredetermined amount. In response to information retrieved from redeemedcoupon discounts, a revised database may be generated and a new revisedpackage of data for a revised selected group of consumers may betransmitted.

[0038] It is an object of the present invention to improve consumerresponse to coupon distribution campaigns.

[0039] It is a further object of the present invention to provide moreaccurate data of which consumers redeem particular coupons in a coupondistribution campaign.

[0040] It is a further object of the present invention to provideadditional demographic data correlated to consumer and coupon redemptionfor a coupon distribution campaign.

[0041] It is a further object of the present invention to reduce orsubstantially eliminate the incidence of fraud in the redemption ofcoupons or copying of coupons.

[0042] It is a further object of the present invention to improveconsumer response to a coupon campaign by targeting consumers withspecific coupon product lines in response to demographic data generatedfrom previous coupon campaigns.

[0043] It is a further object of the present invention to reduce oreliminate handling of paper coupons by consumers, retailers,distributors and manufacturers in the coupon redemption chain.

[0044] These and other objects of the present invention will be realizedin connection with the detailed description of the preferred embodimentset forth below.

BRIEF DESCRIPTIONS OF THE DRAWINGS

[0045]FIG. 1 is a first portion of a flowchart illustrating theoperation of the apparatus and method of the present invention.

[0046]FIG. 2 is a second portion of a flowchart illustrating theoperation of the apparatus and method of the present invention.

[0047]FIG. 3 is a front view of a diskette mailer illustrating thepackaging of a SELLECTSOFT™ diskette.

[0048]FIG. 4 illustrates a sequence of user screens in operation of themethod and apparatus of the present invention.

[0049]FIG. 5 is a block diagram illustrating the operation of theapparatus and method of the present invention.

[0050]FIG. 6 is an illustration of a user display in the method andapparatus of the present invention.

[0051]FIG. 7 is a block diagram illustrating the operation of the couponprinting operation of the present invention.

[0052]FIG. 8 is a block diagram of illustrating the operation of thesystem and method of the present invention.

[0053]FIG. 9 is a flowchart illustrating the operation of the consumersoftware portion of the present invention.

[0054]FIG. 10 illustrates a detail of screen 1 of FIG. 4.

[0055]FIG. 11 illustrates a detail of screen 3 of FIG. 4.

[0056]FIG. 12 illustrates a detail of screen 6 of FIG. 4.

[0057]FIG. 13 illustrates a detail of a screen for selecting furthersubcategories of products from the screen of FIG. 12.

[0058]FIG. 14 illustrates a further detail of the screen of FIG. 6.

DETAILED DESCRIPTION OF THE INVENTION

[0059] In the present invention, traditional paper coupons may beeliminated entirely. Thus, a new name is needed to describe coupondiscounts available to a consumer. Such discounts may not be availablerepeatedly for a given consumer, but may be available only for a singleor limited number of uses. Moreover, such discounts may not be availablefor all consumers, but rather for selected consumers. Thus, thediscounts of the present invention have similar aspects to coupons, butdo not rely upon traditional paper couponing techniques. For thepurposes of this application, such coupon discounts may be referred toas “Virtual Coupons™”. VIRTUAL COUPON™ is a trademark of SellectSoft,L.C.

[0060] A Virtual Coupon™ may not have a physical existence per se, butmay be represented on a computer screen by an icon, graphical image, orthe like. Once selected by a consumer, a Virtual Coupon™ may beredeemable in as concrete a manner as a traditional paper coupon.However, the coupon may exist only as electrically or optically storeddata and not as a traditional paper coupon.

[0061] Referring now to FIG. 5, an overview of the operation of themethod and apparatus of the present invention is illustrated in the formof a flowchart. In step 501, a SELLECTSOFT™ diskette may be createdcontaining Virtual Coupon™ information and program data for displayingand generating Virtual Coupons™. SELLECTSOFT™ and SELLECTSoft™ aretrademarks of SELLECTSoft, L.C. The SELLECTSOFT™ diskette may containdata for generating a number of Virtual Coupons™ for different products.An initial diskette may contain a standard selection of Virtual Coupons™or may be tailored according to predetermined consumer demographic dataor manufacturers specification.

[0062] In step 502, SELLECTSOFT™ diskettes are mailed to consumers,preferably computer owners. Computer ownership is readily obtainabledemographic information available from warranty registrations, on-lineservice memberships, software purchases, magazine publishers or thelike. A SELLECTSOFT™ diskette may even be pre-formatted in a prescribedformat (e.g., MS-DOS™, Windows™, MacIntosh™ or the like) correspondingto consumer demographic data. Moreover, consumer demographic data may beused to provide the SELLECTSOFT™ diskette with appropriate system andprinter drivers for each consumer.

[0063] SELLECTSOFT™ diskette 310 may be attractively packaged asillustrated in FIG. 3 in a bulk diskette mailer 320 so as to entice theconsumer into opening the package and investigating the softwarecontained therein. SELLECTSOFT™ diskette 310, attractively packaged, maypique consumer interest in a manner not possible with other types ofcoupon mass-mailing. A consumer may be more reluctant to throw away acomputer diskette than a package of bulk-mailed coupons. Thus, acomputer diskette may have a longer “table life” in the consumer homethan a package of bulk mailed coupons. As a large number of VirtualCoupons™ may be stored in one diskette, the frequency of such mailingsmay be significantly reduced. Thus, the overall cost of distributingSELLECTSOFT™ diskette 310 may be equal to or less than conventional bulkmailing techniques.

[0064] Although illustrated as a computer diskette, SELELCTSOFT™diskette 310 may also comprise a SELLECTSOFT™ CD-ROM. CD-ROMs have thepotential to hold vastly more data than a diskette. Moreover, the costof CD-ROMs and CD-ROM drives continues to fall rapidly. Thus, many newso-called “multimedia” computers may be equipped with CD-ROM drives.Moreover, as many marketers (e.g., America On-Line™, Prodigy™,CompuServe™ and the like) continue to flood the market with diskettemailings, consumers may have a lowered resistance to throwing away“valuable” diskettes and an increased resistance to loading suchdiskettes onto a computer. CD-ROMs, on the other hand, have yet to seesuch mass mailing, and thus may have an additional consumer enticementfactor associated with them.

[0065] In addition, SELLECTSOFT™ diskette 310 may be substituted oraugmented by downloading of data from an on-line service, Internetconnection, E-mail, Website or the like. For example, it is entirelywithin the spirit and scope of the present invention to provide aninteractive Website or BBS to allow a user to download SELLECTSOFT™data. Initial consumer contact may be made through paper mailing ormailing of SELLECTSOFT™ diskette 310. Alternatively, a consumer may becontacted through E-mail from an E-mail mailing list, or a listautomatically garnered from Usenet postings.

[0066] A user may contact the SELLECTSOFT™ Website or BBS to uploaddemographic information and download Virtual Coupon™ information. For aBBS embodiment, a SELLECTSOFT™ diskette may be provided which includesmodem software and a Graphical User Interface (GUI) tailored to VirtualCouponing™. A local dial-up may be provided for the consumer to connecthis or her computer to a SELLECTSOFT™ BBS. Once connected to theSELLECTSOFT™ BBS, a consumer may upload demographic information whenprompted and download Virtual Coupon™ information.

[0067] An advantage of a SELLECTSOFT™ BBS is that such a system mayallow local store chains and small retailers to operate an interactivecomputer site without the need for Internet connectivity. Moreover, whenconnected to the SELLECTSOFT™ BBS, a consumer may view or download otherinformation, such as store hours, locations, and sales information moreclosely tailored to the needs of a local or regional store chain.

[0068] A SELLECTSOFT™ Website, on the other hand, may be more tailoredto a national audience, and thus may contain data from manufacturers anddistributors to promote product usage. A consumer may download VirtualCoupon™ data from a SELLECTSOFT™ Website after uploading consumerdemographic information.

[0069] SELLECTSOFT™ diskette 310 may be provided with a date code suchthat the software within SELLECTSOFT™ diskette will become disabled oncethe date indicated by the date code has elapsed. Once the date haselapsed, the consumer may be prompted to call the 1-800 number toreceive a new diskette or receive a new authorization number or downloadnew Virtual Coupon™ data.

[0070] By providing a date code, Virtual Coupons™ generated by theSELLECTSOFT™ diskette may be provided with an effective expiration datein addition to expiration dates which may be printed on the face of theVirtual Coupon™. In order to reduce material costs and environmentalimpact issues, SELLECTSOFT™ diskette 310 may be mailed with a returnpostage paid mailer for return of the diskette once all Virtual Coupons™have been redeemed or when a new diskette has been issued.

[0071] In SELLECTSOFT™ BBS or Website embodiments, individual VirtualCoupons™ may be provided with date codes. Each Virtual Coupon™ may bedisplayed with a “redeem by” date. A consumer may download such VirtualCoupons™ and view them at any time locally on his or her own computer.If one or more of the downloaded Virtual Coupons™ have expired, aconsumer may be prompted to reconnect to the SELLECTSOFT™ BBS or Websiteto download a fresh set of Virtual Coupons™ for redemption.

[0072] The home computer owner demographic may be a desirabledemographic for retailers to reach. Typically, home computer owners havehigher education and income levels and may have larger amounts ofdisposable income. Moreover, the home computer user demographic,although changing rapidly, is heavily male. Paper Virtual Coupons™traditionally have a largest responding audience amongst females. Thus,SELLECTSOFT™ diskette 310 may more readily reach desirable consumerdemographic groups missed by traditional paper Virtual Couponing™techniques.

[0073] In step 503, a consumer may load SELLECTSOFT™ diskette 310 intohis or her computer either by running the SELLECTSOFT™ software from theB:\ drive, or by loading at least a portion of the SELLECTSOFT™ softwareinto the hard drive of the consumer's computer. In Windows™applications, an icon may be generated on the consumer's Window™ screen.The consumer may click on such an icon to initiate operation of theSELLECTSOFT™ software. In order to prevent or reduce fraud, the portionof the SELLECTSOFT™ software stored on a consumer's hard drive mayprompt the consumer to insert the SELLECTSOFT™ diskette 310 into theconsumer's B:\ drive (or the like).

[0074] Once the SELLECTSOFT™ software has been loaded into theconsumer's computer, the consumer may then view a greeting screen, suchas that shown in FIG. 10, or in screen 1 of FIG. 4. In addition, awarning screen, such as screen 2 of FIG. 4 may also be displayed. Theconsumer may next be prompted to call a 1-800 or audiotext number on thescreen, as illustrated in screen 3 of FIG. 4, and in FIG. 11. Such tollfree numbers may serve a number of purposes. First, if the consumer ishaving difficulty operating the software on SELLECTSOFT™ diskette 310 orif SELLECTSOFT™ diskette 310 is defective (e.g., exposed to highmagnetic field during shipping) an operator may assist the consumer inresolving the problem or in shipping a new SELLECTSOFT™ diskette 310.

[0075] Second, the 1-800 or audiotext number may be used to obtain anauthorization number to unlock the software in SELLECTSOFT™ diskette310. This authorization number may be used to prevent unauthorized useof the SELLECTSOFT™ software by unintended targets (e.g., new occupantat consumer's old address) and provide a means for reducing fraud aswill be discussed in more detail below. Third, in connection with theauthorization number, the 1-800 number may be used as a means ofcollecting additional demographic data, such as age, income, or thelike.

[0076] To prevent unauthorized use of SELLECTSOFT™ diskette 310, variousmeans may be employed to verify that a targeted consumer is indeed thecaller on the 1-800 number. Automatic Number Identification (ANI)sometimes referred to as “Caller-ID”™ may be utilized to confirm thatthe caller is indeed calling from the target consumer's residence.Correct residence phone number information may be provided from aconsumer database or may be entered at this point for future use. If aconsumer is not calling from his home phone (e.g., office, cell phone orthe like) a 1-800 operator may then query the consumer for thisdiscrepancy.

[0077] In step 503, the 1-800 operator may obtain marketing informationfrom the consumer and store such information in the consumer database.Marketing information may include age, marital status, income level,children present, or the like. In addition, the operator may verify thatthe name spelling and address are correct. Once the consumer hasprovided this information to the 1-800 operator, a validation number maybe given to the consumer to enable/unlock the software in SELLECTSOFT™diskette 310.

[0078] In step 510 a telemarketer may determine whether the consumer ispresently a frequency card holder. In step 511, the telemarketer willappend the current database of a frequency card holder with additionaldemographic information, and/or enable Virtual Coupon™ discounts for aconsumer. If the consumer is not a frequency card holder, an applicationfor frequency card may be filled out over the phone. Once complete, theconsumer may be given an authorization code as discussed above. Itshould be noted that in an alternative embodiment, such data may begathered using automated techniques, for example by voice prompt,on-line connection, or the like.

[0079] In step 504 consumers without frequency cards may be mailed afrequency card in response to the frequency card application of step511. In alternative embodiments, a debit or smart card may be used inaddition to or as an alternative to a frequency card. In the preferredembodiment, a non-specialized card may be used, such that a consumerneed not carry an additional ‘coupon’ card with him or her to the store.

[0080] As discussed above, the elements of steps 503, 510, and 511 mayalso be achieved by using a computer dial-up or Internet access. Aconsumer may be prompted to fill out an electronic “form” in order toreceive authorization. Such a form may be filled out off-line and datauploaded in a similar manner as is presently done for warrantyinformation for new computer systems. Alternatively, such informationmay be provided on-line or through an Internet connection (e.g., e-mailor Website). Authorization may be provided to a consumer's computerdirectly through such a dial-up or Internet connection in a mannerinvisible to the consumer. Alternately, a code word or alphanumeric maybe provided to the consumer as a “key” to unlock the SELLECTSOFT™software.

[0081] The validation number may then be entered by the consumer intohis computer, when prompted by the SELLECTSOFT™ software. The process bywhich the SELLECTSOFT™ software is unlocked uses an algorithm whichtakes into account numerous pieces of information including theconsumer's name, serial number of SELLECTSOFT™ diskette 310, and date ofactivation. One advantage of this approach to authorizing the softwareis that replication of the software is simplified, as each diskettewithin a campaign may be identical.

[0082] As part of the authorization process in step 503, a consumer mayprovide a PIN number corresponding to a store frequency card. Such a PINnumber may be used as a method of verification. Once verified, a cardmember need not call the 1-800 number or otherwise be authorized.Alternately, existing card members could be pre-authorized or authorizedwhen obtaining cards. As discussed below, the apparatus and method ofthe present invention, by using Virtual Coupons™, effectively preventsunauthorized users from redeeming coupon discounts.

[0083] The use of a frequency card may eliminate or reduce the need fordemographic information gathering at step 503. Such information mayinstead be obtained from existing frequency card data, or may begathered at the time a frequency card is applied for. As a frequencycard may also qualify as a check cashing card, consumers may be lessinclined to object to requested personal information (e.g., maritalstatus, number of children, annual income, and the like) and may be moreinclined to provide accurate information, as the card may be used as afinancial instrument. In contrast, consumers may be less inclined toprovide information (or accurate information) in order to receive coupondiscounts. Such information requests are more clearly discerned byconsumers as attempts at gathering marketing data and may be viewed asan invasion of privacy.

[0084] The use of Virtual Coupons™ may eliminate or reduce the need forphysical coupon processing at a traditional coupon brokerage house. Suchcoupon brokerage houses receive coupon and redemption data fromretailers and package such data for manufacturers such that retailersmay be reimbursed for coupon redemptions. Instead, data gather through astore's computer system may be transmitted directly to a manufacturer(or though a coupon broker) for further redemption. A coupon brokeragemay process such data to retrieve the unique consumer ID number andpurchasing data and upload such data to the SELLECTSOFT™ database asillustrated in step 506.

[0085] In step 506, a consumer may purchase products at a store andreceive Virtual Coupon™ values using his or her frequency card. Duringcheckout, using traditional scanning equipment, the universal productcode (UPC) and product numbers for each product may be retrieved andstored. Such data may be uploaded is step 507 for later use ingenerating demographic purchasing studies. Data concerning VirtualCoupon™ values redeemed, as well as other purchase data may bedownloaded to the SELLECTSOFT™ database. In step 507, the SELLECTSOFT™database may be updated and appended with consumer purchase informationfrom step 506 to provide a better profile of the purchasing habits ofeach consumer.

[0086] Consumer ID information may be utilized to update theSELLECTSOFT™ database as illustrated in step 507. Once SELLECTSOFT™database records are updated with ID number information, a newSELLECTSOFT™ mailing program may be developed in step 508 using thedemographic and purchasing information generated from a previous mailingof SELLECTSOFT™ diskette 310. Subsequent mailings may be mailed on aweekly, monthly or quarterly basis, depending upon consumer use ofSELLECTSOFT™ Virtual Coupons™ and other marketing factors.

[0087] Copy protection techniques may be used to prevent further copyingof SELLECTSOFT™ diskette 310. For example, a known bad sector may beplaced on the diskette to prevent duplication of the diskette using DOSutilities. However, prevention of duplication may not be a long termconcern, as the real-time authorization system for authorizing theSELLECTSOFT™ software may severely reduce or eliminate fraud fromVirtual Coupon™ duplication.

[0088] As an alternative to, or in conjunction with a live 1-800operator, an audio text system (e.g., voice mail menu or the like) maybe provided for retrieving marketing data and dispensing validationnumbers. Upon calling the 1-800 number, the consumer may be promptedthrough a series of voice menus. The consumer may enter informationusing the touch-tone™ keypad on a telephone.

[0089] Alternately, or in addition to the techniques discussed above,SELLECTSOFT™ diskette 310 may be provided with modem communicationssoftware to upload marketing information via modem (if the consumer isso equipped) and download validation information. Such a technique mayoperate in a manner similar to warranty registration software typicallypackaged with computer and software. The consumer may enter marketinginformation in an applications screen in Windows™ via keyboard on his orher compute. Once entered, such data may then be stored and uploaded viamodem to the SELLECTSOFT™ database. Once such demographic andidentification information is received, a validation number may then bedownloaded to the consumer's computer via the same modem connection.

[0090] Once the consumer has received a validation number, he mayoperate the software contained in SELLECTSOFT™ diskette 310. Theoperation of the software within SELLECTSOFT™ diskette 310 isillustrated in FIG. 4 and FIGS. 10-14. In FIG. 10 and screens 1 and 2 ofFIG. 4, the consumer may view greeting and warning messages. In FIG. 11and screen 3 of FIG. 4, the consumer may be prompted to call the 1-800number as discussed above in connection with FIG. 5. In FIG. 11 andscreen 4 of FIG. 4, the consumer may then be prompted to enter hisvalidation code as received from the 1-800 number.

[0091] The validation code may prevent unauthorized use of SELLECTSOFT™software. Each validation number may be unique to the serial number ofeach SELLECTSOFT™ diskette 310. Thus, a consumer may not be able tovalidate his or her SELLECTSOFT™ diskette 310 using a neighbor'svalidation number. The validation number also insures that accuratemarketing information is received from the consumer before VirtualCoupons™ are issued in order to insure that demographic data generatedby the SELLECTSoft™ system has a high degree of accuracy as compare toprior art systems. In addition, the use of the validation number reducesthe number of consumers necessary to track with the system and assistsin mailing list maintenance and hygiene. Consumers who do not obtainvalidation numbers after a predetermined period may be contacted bytelemarketing personnel to inquire as to why the SELLECTSOFT™ softwarewas not utilized, and/or to assist in persuading the consumer to utilizethe SELLECTSOFT™ system.

[0092] Once a valid validation code has been entered, an instructionscreen may be displayed as illustrated in screen 5 of FIG. 4.instruction screen 5 may include a tutorial on how to use SELLECTSOFT™as well as a demonstration of SELLECTSOFT™ software.

[0093] From instruction screen 5, the user may proceed to main menuscreen 6. FIGS. 12-13 illustrate the further operation of the menusystem. A consumer may click on a general category, and then click onmore specific categories within that general category. It should benoted that in the preferred embodiment, the SELLECTSOFT™ software isdesigned to work in a Windows™ 3.0x graphical user interface (GUI)environment or Windows™NT™ GUI environment. Thus, the screensillustrated in FIG. 4 may not necessarily be displayed in the ordershown. When a validation number has been previously entered, a user mayproceed directly to instruction screen 5 or main menu screen 6 once theSELLECTSOFT™ software has been loaded.

[0094] From main menu screen 6, a user may select one of a number ofcategories of products to review. Each product may be grouped accordingto a category and may appear in more than one category. Example ofcategories may include, for example, supermarket departmentclassifications (e.g., frozen foods, produce, meats, deli, or the like)or other types of categories of products (e.g., electronics, fast foods,or the like). The consumer may select a category by clicking on acategory icon or selecting a category icon from a pull-down menu in amanner known in the art. Each category, as illustrated in FIG. 6, maycomprise one or more screens containing graphical representations ofVirtual Coupons™.

[0095] A user may browse through screens of Virtual Coupons™ within acategory, or through various screens in various categories, asillustrated in FIGS. 12 and 13. In addition, a simple text search enginemay be provided to enable the consumer to quickly find Virtual Coupons™of interest. A consumer may enter a word or portion of a word defining abrand name, category, or generic product name. The SELLECTSOFT™ softwaremay then display a Virtual Coupon™ or Virtual Coupons™ most closelyrelated to the entered data.

[0096] From a display Virtual Coupon™ menu, such as illustrated in FIGS.6 and 14, a consumer may select a Virtual Coupon™ by clicking on theVirtual Coupon™ or selecting the Virtual Coupon™ using a pull-down menuor the like. Once a number of Virtual Coupons™ have been selected, theconsumer may then print a list of selected Virtual Coupons™ by clickingon a print icon or selecting a print option from a pull-down menu. Thecoupon list may include a bar code or the like representing a particularconsumer's identification number or numbers. Such a bar code may be usedas a temporary frequency card for a consumer who has not previouslysigned up for a frequency card. Alternatively, redemption of virtualcoupons using the ‘temporary’ frequency card may trigger a mailing of apermanent frequency card to the consumer.

[0097]FIG. 7 illustrates the steps in printing a list of selectedVirtual Coupons™. It should be noted that prior to installation of theSELLECTSOFT™ software, a suitable printer driver may be installed in theconsumer's PC, either as a part of the SELLECTSOFT™ software, or as partof the Windows™ GUI. In the preferred embodiment, the SELLECTSOFT™software may use the selected default printer driver in the Windows™ GUIas a printer driver.

[0098] Once the print command has been selected, as indicated in FIG. 7,a list of selected Virtual Coupons™ may be printed on a consumer'sprinter. In step 701, a list of selected Virtual Coupons™ may be printedon plain paper provided by the consumer, or may be printed on specialpaper provided with SELLECTSOFT™ diskette 310.

[0099] Individual Virtual Coupons™ may be stored on SELLECTSOFT™diskette 310 as bit map data, suitably compressed for storage usingcompression techniques known in the art such as the LZEXPAND.DLLutilities shipped with Windows™ 3.0 or 3.1. Alternatively, VirtualCoupon™ image data may be stored as a series of bit-mapped componentswhich may combined to generate a Virtual Coupon™ image for display orprinting. For example, common border and Virtual Coupon™ redemptioninformation need only be stored once. Product logo and other informationmay be stored as individual bit maps. Discount or rebate information(e.g., cents off) may be generated from numerical data using font bitmaps. Bar code images may also be suitably generated in a similarmanner.

[0100] A consumer may select, using a mouse or the like, individualVirtual Coupons™ for a list to be printed on a home computer printer. Aseach Virtual Coupon™ is selected, a savings counter, as illustrated inFIG. 12, may display total savings from individually selected VirtualCoupons™ during a particular session. Thus, the consumer can readilyappreciate the overall savings provided through SELLECTSOFT™.

[0101] The list of Virtual Coupons™ may be printed in a graphics mode ofa laser type printer (e.g., Hewlett-Packard™ laser jet series) Ink jetprinter (e.g., Canon™ Bubblejet™ series) or high resolution dot matrixprinter (e.g., 24 pin dot matrix printer) for example at 300×300 dotsper inch (dpi) resolution. Alternately, the list of Virtual Coupons™ maybe printed in a text mode using various printer types. In the preferredembodiment, the Virtual Coupon™ list may be provided in a graphics mode,where each Virtual Coupon™ listed may be in the form of a miniaturecoupon icon or the like. In addition, bar codes for selected VirtualCoupons™ may be printed as part of the Virtual Coupon™ list.

[0102] The Virtual Coupon™ list may be provided with printed indiciaindicating product and discount or rebate, as well as traditional couponredemption terms (expiration date or the like). Optional Bar codesprovided on the Virtual Coupon™ list may comprise a group of bar codesidentifying product, size, and redemption terms (e.g., cents off,two-for-one, or the like). This group of bar codes may be those alreadyin use in prior art Virtual Coupons™. Thus, the Virtual Coupon™ listgenerated by the SELLECTSOFT™ software may be read by existingsupermarket or retail store scanning or coupon redemption deviceswithout modification to those devices.

[0103] In the preferred embodiment, however, such bar codes may not berequired, and the Virtual Coupon™ list acts only as a shopping guide forthe consumer to prompt the consumer to purchase selected discountedproducts. In conventional frequency or savings club programs, consumersmay shop for products without consciously looking for discountedproducts. The Virtual Coupon™ list of the present invention provides anincentive for the consumer to shop for particular items for whichVirtual Coupons™ have been generated.

[0104] The coupon list may be provided, however, with a bar code orother computer-readable indicia corresponding to a consumer's codenumber or numbers. Thus, if a consumer has not previously signed up fora store's frequency card program, the consumer may use the coupon listas a ‘temporary’ frequency card. The bar code may be scanned atcheck-out and read by a store computer to apply virtual coupondiscounts. If the consumer has not already requested a frequency card,the act of scanning the consumer bar code at check-out may trigger amailing of a frequency card to the consumer.

[0105] To prevent coupon fraud, when each discounted product ispurchased, an individual consumer's Virtual Coupon™ database may beupdated to reflect that a Virtual Coupon™ has been redeemed. Anindividual consumer's Virtual Coupon™ database may allow for one, two,or more redemptions of a particular Virtual Coupon™ value before suchVirtual Coupon™ has expired. Moreover, an individual consumer's VirtualCoupon™ database may automatically “expire” Virtual Coupons™ upon apredetermined expiration date or at the end of a predeterminedexpiration period.

[0106] As no paper coupons are exchanged, coupon replication and fraud,either by consumers or retailers is virtually eliminated. As eachVirtual Coupon™ redemption may be tied to a particular consumer'sVirtual Coupon™ database, fraudulent redemption, even on an electroniclevel (e.g., by computer hacking or the like) may be difficult and timeconsuming and more readily detected.

[0107] Since it is unlikely that consumers will carry the diskettecontaining the SELLECTSOFT™ software, other techniques should beavailable for consumers to access virtual coupons at in-store computerkiosks. One technique could be through the use of the authorizationnumbers provided to each of the consumers who has used the SELLECTSOFT™software on his or her own home computer. These authorization numberswould allow a consumer to select virtual coupons from his or her accountfor use in the retail store containing the computer kiosk.

[0108] Once a correct authorization number has been established for aconsumer, he or she may enter that data at the computer kiosk to checkthe virtual coupons accredited to his or her account, and select onethat may be appropriate for goods to be purchased at the retail locationcontaining the computer kiosk. In one version of the computer kioskarrangement, the kiosk could simply print those virtual coupons found ina consumers account and selected by the consumer. The printed couponscould then be used as part of the purchase made by the consumer.

[0109] To prevent consumers from merely using the frequency card as away of obtaining windfall savings, Virtual Couponing™ may be providedwith a feedback mechanism to encourage the consumer to make consciouscoupon purchase choices. As noted above, bar codes may be provided onthe Virtual Coupon™ list such that a consumer must present such a listto a cashier at checkout to receive Virtual Coupon™ discounts.

[0110] In an on-line embodiment (e.g., BBS, Internet, or the like) aconsumer may provide coupon feedback information via an on-lineconnection to enable Virtual Coupon™ discounts within an individualconsumer's Virtual Coupon™ database. By encouraging a consumer to enableindividual Virtual Coupons™, the consumer is encouraged to shop forthose particular items, rather then merely collect such discounts as awindfall. In-store computer kiosks may be provided to allow a consumerto log into his or her Virtual Coupon™ account (e.g., by inserting theSELLECTSOFT™ diskette) to check on available Virtual Coupon™ discounts,print a shopping list, and select Virtual Coupons™ for redemption.

[0111] In step 702, the consumer may redeem Virtual Coupon™ (s) at aretailer by purchasing the discounted product. As noted above, theVirtual Coupon™ discount may be automatically applied to the consumer'stotal at the checkout by use of the frequency card, or a consumer barcoded list may be used to indicate which Virtual Coupon™ discounts areto be applied. Once used, the list may be discarded, and thus no papercoupons need be retained. Moreover, as each Virtual Coupon™ is checkedagainst an individual consumer's Virtual Coupon™ database (via frequencycard), opportunities for in-house staff to fraudulently redeem couponsis diminished.

[0112] It should be noted that the SELLECTSOFT™ software may allow foronly a limited number of redemptions a particular Virtual Coupon™. Asdiscussed above, Virtual Coupons™ may generally be used only forpromotional purposes to introduce consumers to new products or to inducefuture sales of a product. A product manufacturer may not want to havelarge portions of sales occur at Virtual Coupon™ prices, however. Thus,after a predetermined number of redemptions, an individual VirtualCoupon™ selection may disappear from the SELLECTSOFT™ software menu andredemption of such Virtual Coupons™ may be blocked.

[0113] Once redeemed at the retailer, data from Virtual Coupons™ may bestored in a store computer and uploaded to a coupon depository forfurther redemption and processing. In step 703, at the coupondepository, Virtual Coupon™ redemption data such as product informationdata and consumer ID may be captured and sorted to update a consumerdatabase. From this data, it may be determined exactly which consumerspurchased which particular products and from which retailers. Such datamay have a high degree of accuracy as compared to previous trackingtechniques.

[0114] From this marketing data, the consumer database may be updated asillustrated in step 704. The consumer database may contain specificinformation as to quantities and selections of products purchased by aconsumer, as well as more general information as to types of productspurchased. From this information, a new SELLECTSOFT™ diskette 310 (ornew virtual coupon™ data) may be prepared for each selected consumer,tailored to the demographics and demonstrated buying habits of theconsumer.

[0115] For example, if an initial SELLECTSOFT™ diskette 310 mailed to aconsumer contains various pet product Virtual Coupons™ (e.g., dog food,cat food, or the like), and several of these are subsequently redeemed,it may be inferred that the consumer is a pet owner. In future mailings,additional pet product Virtual Coupons™ may be included, or alternately,such Virtual Coupons™ may be more narrowly targeted (e.g., to dogproducts only or cat products only) depending upon the buyingpreferences of the consumer.

[0116] If the consumer redeems no Virtual Coupons™ from a givencategory, such Virtual Coupons™ may be de-emphasized until theconsumer's buying habits change. For example, if a given consumer usesno baby or child product Virtual Coupons™, such categories may bede-emphasized. If a consumer starts redeeming such Virtual Coupons™,then it may be inferred that the consumer has started a family, andVirtual Coupons™ targeted toward family needs may then be included in aconsumer's subsequent mailings.

[0117] Other techniques for distributing Virtual Coupons™ and retrievingdata may be utilized within the spirit and scope of the presentinvention. For example, on-line services or the like may be utilized todownload or upload data. A user may receive an initial SELLECTSOFT™diskette 310 in the mail or download an initial package of program datafrom an on-line service or through 1-800 modem dialup or through CD-ROMor the like. Subsequent “packages” of Virtual Coupons™ may then bedownloaded to a consumer's computer through on-line services or 1-800modem dialup. Virtual Coupon™ printing information may be uploaded viasuch on-line services to provide marketing data, however, it is believedthat such printing data may not be as accurate as redemption data, asredemption data indicates a definite sale of a product.

[0118] In an alternative embodiment of the present invention, aso-called “smart card” may be utilized for a consumer frequency card.Smart cards generally comprise a plastic credit-type card with anembedded silicon chip, typically a memory array, although logic circuitsand even microprocessors may be embedded in a smart card. Smart cardshave been used in Europe for banking purposes and in the United Statesfor satellite decryption systems (See, e.g., Gammie et. al., U.S. Pat.No. 5,029,20, issued Jul. 2, 1991, entitled “External Security Modulefor a Television Signal Decoder” incorporated herein by reference).

[0119] The enhanced memory storage abilities of smart cards may beapplied in an alternative embodiment of the present invention as afrequency card to store all or a portion of Virtual Coupon™ data. Inaddition to storing consumer information, a smart card frequency cardmay also be used to store Virtual Coupon™ information. A smart cardinterface device, coupled to a consumer's computer, may be used todownload Virtual Coupon™ data onto a consumer's smart card frequencycard. To serve consumers without a smart card interface device, a publiccomputer kiosk or other type of machine (e.g., automated teller or thelike) may be used to download Virtual Coupon™ data. As such smart cardsmay be in widespread use in coming years, implementation of such anembodiment may be met with little resistance from consumers.

[0120] At checkout, a consumer's smart card frequency card may be readby a smart card interface provided coupled to a checkout register.Virtual Coupon™ data may be read from a consumer's smart card, and maybe checked against a consumer's Virtual Coupon™ database to preventagainst fraud. Once redeemed, the Virtual Coupon™ data may be deleted(or marked redeemed) on the consumer's smart card frequency card.Similarly, the consumer's individual Virtual Coupon™ database may bemarked. Thus, a given Virtual Coupon™ may be redeemed only once or apredetermined number of times.

[0121] Referring back to FIG. 5, a second portion of the SELLECTSOFT™process will now be described. As illustrated in FIGS. 4, 6, and 7, aconsumer may print out a list of selected Virtual Coupons™ once avalidation number has been received. Virtual Coupons™ may be redeemed ata retailer, as illustrated in step 510 and discussed in step 702 in FIG.7.

[0122] The retailer may redeem the Virtual Coupon™ in one of severalways. In the preferred embodiment, the retailer need not redeem theVirtual Coupon™ per se, and the process is entirely automatic. When theconsumer reaches the checkout line, he or she presents items forpurchase. When items are rung up, the consumer presents his or herfrequency card, which may be scanned or read. The store computer systemreads a consumer's Virtual Coupon™ database and applies Virtual Coupon™discounts for applicable purchased products. In addition a consumer'sVirtual Coupon™ database may be appended to indicate that the consumerhas redeemed that Virtual Coupon™ value. Thus, a consumer may redeem aparticular Virtual Coupon™ value only once, or a limited number oftimes, before that Virtual Coupon™ value expires

[0123] From the understanding of the invention described above inconnection with FIGS. 3, 4, 5, 6, and 7, a more detailed description ofthe invention will now be provided in connection with the flowchart ofFIGS. 1 and 2. FIGS. 1 and 2 are a combined flowchart illustrating theSELLECTSOFT™ Virtual Couponing™ technique in more detail. In addition,the flowchart of FIGS. 1 and 2 further illustrate how marketing data maybe generated and exploited using the SELLECTSOFT™ Virtual Couponing™techniques. FIG. 1 is a flowchart illustrating a first portion of thesteps in the SELLECTSOFT™ electronic Virtual Coupon™ distributionsystem.

[0124] As illustrated in FIG. 1, consumer mailing LIST A 101, LIST B102, LIST C 103, and LIST D 104 may be combined to form an initialSELLECTSOFT™ database 105. Any number of lists may be combined to formSELLECTSOFT™ database 105, and in addition, additional list informationmay be later added to SELLECTSOFT™ database 105 as time progresses.Examples of suitable mailing and/or consumer lists 101-104 may comprise,for example, list identifying consumers with household computers. Lists101-104 may originate from multiple sources (e.g., computer magazinesubscription lists, commercial mailing list services, or the like)typically used for database development, direct mail, and telemarketingor the like. Moreover, lists 101-104 may be obtained from a list ofcustomers participating in one or more frequency card programs.

[0125] Combined, these lists may be used to append and/or formSELLECTSOFT™ database 105. In addition to consumer name and addressinformation, SELLECTSOFT™ database 105 may be revised, as will befurther discussed below, to include additional information about eachconsumer. Examples of such additional information includeactivation/validation information and demographic information retrievedduring the 1-800 validation discussed above. Moreover, individualVirtual Coupon™ redemption information may also be added to SELLECTSOFT™database 105.

[0126] A risk/fraud score may be added to SELLECTSOFT™ database 105 frominformation gathered during the activation call. This score may be basedupon a number of criteria, for example, whether a consumer's ANI matchesthe number in the database for that consumer or whether a consumer'saddress, name or other basic information match the information in theSELLECTSOFT™ database. Corresponding risk/fraud scores may be assignedto each consumer based upon such criteria. Depending upon a consumer'srisk/fraud score, a validation number may or may not be given to aconsumer. If the risk/fraud score is high, a validation number may bedenied and a new SELLECTSOFT™ diskette 310 mailed to the consumer. Thus,for example, the use of false names or addresses or the like may beeliminated or reduced.

[0127] In addition, consumers with high risk/fraud scores (as well as arandom sampling of other consumers) may be later selectively monitoredfor Virtual Coupon™ fraud. Thus, the need to monitor all consumerswithin SELLECTSOFT™ database may be eliminated or reduced.

[0128] In step 106, SELLECTSOFT™ database 105 may be further passedthough a list hygiene/data append step. In step 106, the combined lists101-104 may be cross checked to reduce or eliminate redundant entries.For example, variations of the same consumer name may be combined intoone entry. Thus, for example, a consumer name entered several times a“R. BELL”, “R. P. BELL”, “ROBERT BELL”, or “BOB BELL” may be combinedinto one data entry such that the consumer does not receive multipleSELLECTSOFT™ diskettes.

[0129] In addition, a cross-reference to the database phone numberand/or address may be used to determine if a prior diskette was sent thesame address. Thus, for example, multiple consumers at the samehousehold having slightly different addresses may not receive multiplecopies of SELLECTSOFT™.

[0130] In addition, in step 106, Zip+4 postal codes may be added toaddresses to further speed processing of mailings and/or qualify forreduced postal rates. Moreover, the postal service NCOA (national changeof address) file may be cross-referenced with data in SELLECTSOFT™database 105 to provide new consumer addresses or to eliminate redundantmailings to the same consumer at multiple addresses.

[0131] In step 107, SELLECTSOFT™ database 105 may be segmented intovarious lists based upon consumer buying habits (from demographicinformation) regionality, and/or other product manufacturersspecifications. For example, for a regional mailing of SELLECTSOFT™diskette 310, it may be desirable to segment SELLECTSOFT™ database 105into a list for a particular region (e.g., mid-atlantic region,metropolitan Washington D.C. region). Such segmentation may be made on azip code, state or other basis. Using zip codes it may be possible tosegment a list to a particular individual neighborhood.

[0132] Moreover, other demographic information may be used to segmentSELLECTSOFT™ database 105, such as annual income, or computer type. Forexample, in an initial release, SELLECTSOFT™ software may be limited toa Windows™ GUI environment. Thus, it may be desirable to segmentSELLECTSOFT™ database, at least initially, to target Windows™ users.Other segmented lists may be then prepared to target users of otheroperating systems (e.g., MS-DOS™, MacIntosh™, or the like) to providesuch users with appropriately formatted SELLECTSOFT™ software.

[0133] Once a target list has been generated, SELLECTSOFT™ diskettes 310may be published as illustrated in step 108. Manufacturer VirtualCoupons™ may then be entered into a SELLECTSOFT™ master mailer disketteutilizing a proprietary build process. Each SELLECTSOFT™ diskette 310mailed on a given mailing campaign may contain identical Virtual Coupon™information, thus simplifying diskette reproduction. List segmentationmay be utilized to group consumers into mailing campaign groups suchthat diskettes tailored toward particular consumer demographic profilesmay be produced in one batch.

[0134] A label affixed to each SELLECTSOFT™ diskette 310 may denote aunique SELLECTSOFT™ serial number for that diskette, along with address,phone number, and consumer name, as indicated in FIG. 3. The serialnumber of the diskette may be later used by the consumer in thevalidation process as discussed below.

[0135] In step 109, SELLECTSOFT™ diskettes 310 may then be inserted intomailers and mass mailed to consumers A, B, C, & D (110, 111, 112, and113). For the purposes of illustration, four consumers A,B,C, & D (110,111, 112, and 113) are shown. However, it may be appreciated that thenumber of consumers in a given mailing will be considerably larger.

[0136] In step 114, consumers A, B, C, & D (110, 111, 112, and 113) maycall an audio-text or 1-800 number (or modem connection) to providefurther demographic data, confirm name and address, and receivevalidation information, in the manner discussed above in connection withFIG. 5.

[0137] Note that although FIG. 1 illustrates each consumer A, B, C, & D(110, 111, 112, and 113) receiving validation via the 1-800 number, itis presumed that for a given campaign, a certain percentage of consumersmay fail to respond. For example, some targeted consumers may not have acomputer, despite demographic data to the contrary. Alternately, aconsumer may not be interested in SELLECTSOFT™ or SELLECTSOFT™ diskette310 may have been lost or misdirected in the mail.

[0138] For those consumers who fail to respond to a mailing, follow-uptelemarketing calls may be made to determine why the consumer failed torespond. The SELLECTSOFT™ database may then be adjusted to eithereliminate that consumer name, or modify future mailings in response toconsumer comments, data, and the like. Note that as opposed to prior artpaper Virtual Couponing™ techniques, the SELLECTSOFT™ system allows formore careful tracking of which consumers open the Virtual Coupon™mailing, which consumers redeem Virtual Coupons™ , and which consumerstake no interest whatsoever. In contrast, conventional paper VirtualCouponing™ techniques may only provide information as to what percentageof Virtual Coupons™ from a given campaign have been redeemed.

[0139]FIG. 2 is a flowchart illustrating a further portion of the stepsin the SELLECTSOFT™ electronic Virtual Coupon™ distribution system.Again, as with FIG. 1, this portion of the detail flowchart illustratesthe steps shown in FIG. 5 in more detail.

[0140] As illustrated in FIG. 2, from step 114, each consumer A, B, C, &D (110, 111, 112, and 113) may then receive an authorization orvalidation number after providing demographic and proof ofidentification information. It should be noted that step 114 may not berequired for SELLECTSOFT™ diskettes subsequently mailed to the sameconsumer 110-113, as demographic information and authorization data mayalready have been exchanged. In step 150, if it is determined whetherconsumer 110-113 already has a frequency card. If consumer 110-113already has been provided with a frequency card, no activation may berequired and the process may pass to the next step. If consumer 110-113does not presently have a frequency card, one may be applied for on thephone, and an “instant” frequency card generated for the consumer, asdiscussed below.

[0141] Each consumer A, B, C, & D (110, 111, 112, and 113) may thenprint out a list of selected Virtual Coupons™ as discussed above inconnection with FIG. 7 and take such a list of Virtual Coupons™ toretailer A, B, C, or D (119, 120, 121, or 122). The Virtual Coupon™ listmay include a consumer identification number encoded as a bar code. Sucha bar code may be scanned by existing checkout scanning equipment toread the consumer identification number. If a consumer has been assignedan instant frequency card by telephone application, the bar code printedon the coupon list may serve as that temporary frequency card ID.

[0142] As illustrated in FIG. 2, each consumer A, B, C, & D (110, 111,112, and 113) make take the list of Virtual Coupons™ to any of retailersA, B, C, or D (119, 120, 121, or 122) or multiple retailers. For thepurposes of illustration, only four retailers A, B, C, or D (119, 120,121, or 122) are illustrated here. However, it can be appreciated thatthe number of retailers may be significantly greater.

[0143] Upon checkout at retailers 119-122, consumer ID data may becaptured at the point of sale (POS) using scanning equipment asdiscussed above, or my magnetically reading a frequency card, or thelike. Such techniques may be used where such equipment is already inservice and thus significant modifications to a retailer's hardware maynot be necessary. Alternately, new scanning hardware and/or software maybe incorporated into retail bar code scanning equipment to capture andupload SELLECTSOFT™ consumer ID, marketing and/or Virtual Coupon™ data.

[0144] In step 124, retailers A, B, C or D (119, 120, 121, or 122) mayupload data relating to redemption of SELLECTSOFT™ Virtual Coupons™,along with other marketing information (e.g., products purchased) intodata depository 126. From data repository 126, queries may be made, asillustrated in step 127 to determine which consumers are purchasingwhich products using SELLECTSOFT™ Virtual Coupons™. In order to providemarketing data to retailers, product manufacturers and the like, a dataaccess mechanism 128 may be provided to allow queries to be made to theSELLECTSOFT™ database via modem dialup. on-line service, or the like.

[0145] As illustrated in FIG. 2, the SELLECTSOFT™ database repository126 may receive additional consumer information through data migrationstep 123. As illustrated in step 129, additional consumer data mayinclude demographic data received from other sources, lifestyle andpsycho graphic information. In addition, list hygiene functions may beperformed, as discussed above in connection with FIG. 5 to eliminateredundant entries and update consumer information.

[0146] The SELLECTSOFT™ database repository 126 may be utilized toredeem Virtual Coupons™ in real time at a retail location duringcheckout. A UPC product code may be scanned electronically duringcheckout, and data from the SELLECTSOFT™ database may be reviewed todetermine whether such a product is eligible for Virtual Coupon™discount redemption. If a consumer attempts to redeem too many of aparticular Virtual Coupon™, authorization to redeem such VirtualCoupons™ may be denied.

[0147] As illustrated in Step 125, SELLECTSOFT™ data may be managed forfurther distribution or resale. As noted earlier, accurate demographicinformation is highly valuable to marketing groups, retailers, andproduct manufacturers. As illustrated in step 130, SELLECTSOFT™ mailinglists may be resold (list & management resale) or database informationmay be resold (database management & resale). Alternately, aggregatedata (research and reporting) may be sold, indicating consumer trends orthe like. Retention/Relationship Programs may be generated (e.g., clubor membership card or the like) from SELLECTSOFT™ data, and/or point ofsale data promotions may be created.

[0148] Retailers 132 may access the SELLECTSOFT™ database to determinewhich products in their region or demographic mix may be popular or mayneed further promotion. Product manufacturers, marketers, and the like131 may also use the SELLECTSOFT™ database to determine product salesversus demographic data or the like. The Query monitoring/governingsoftware 127 may allow retailer 132 or product manufacturer 131 toproduce a number of queries on SELLECTSOFT™ data based on anycombination of criteria stored in the SELLECTSOFT™ database. Querymonitoring/governing software 127 may meter such queries on a cost perquery or online connect time basis so that retailers 132 of productmanufacturers 131 may be charged for such data queries. Further, querymonitoring/governing software 127 may be provided with lockout orsecurity features to prevent unauthorized access to an individualconsumer's file so as to prevent unnecessary invasion of privacy.

[0149] Although discussed above in terms of diskette storage andmailing, it should be appreciated that other techniques for distributionand authorization may be utilized within the spirit and scope of thepresent invention. Virtual Coupon™ data may be transmitted via Internetor Internet World Wide Web (WWW) or through on-line services or on-lineservices providing access to the Internet. Similarly, dialup access maybe provided via modem or the like.

[0150] Moreover, SELLECTSOFT™ diskette 310 may be substituted with othertypes of data storage media, including but not limited to CD-ROM, smartcard, flash EPROM, PCMCIA card, or the like. CD-ROMs in particular mayprovide additional storage capacity to store a large number of VirtualCoupons™ and/or advertising and promotional materials includingso-called multimedia displays or the like (e.g., video advertisements).

[0151]FIG. 8 illustrates the flow of data from the various computersused in the present invention. As illustrated in FIG. 8, SELLECTSOFT™database computer 801 may generate a package of Virtual Coupon™ data fordistribution to consumer computer 803-804. SELLECTSOFT™ databasecomputer may comprise a computer, computers, or network of computers orthe like. The package of Virtual Coupon™ data may be distributed toconsumer computers 802-804 via mailing of diskette as discussed above,or by other means (e.g, modem dialup, Internet, on-line service, ISDN,or other data transmission scheme).

[0152] Consumer computers 802-804 may typically comprise a homecomputer, PC or the like, such as an IBM™ compatible PC capable ofrunning Windows™ software. Consumer computers 802-804 may receivedemographic and/or identification data from respective consumers andcommunicate such data to SELLECTSOFT™ database computer 801 vialtelemarketing data entry 806. Alternately, demographic and/oridentification data may be communicated verbally via a 1-800 call asdiscussed above. In response, to transmission of demographic and/oridentification data, validation data may be transmitted to consumercomputers 802-804 to allow for printing of a list of Virtual Coupons™from the package of Virtual Coupon™ information.

[0153] Virtual Coupon™ redemption data may be transmitted back to theSELLECTSOFT™ database computer 811 when Virtual Coupons™ are redeemed atretailer 810. Virtual Coupon™ data may be electronically transmittedfrom retailer 810 to SELLECTSOFT database computer 801. Note that datagenerated in the SELLECTSOFT™ system may be fed-back to the SELLECTSOFTdatabase computer 801. This feed-back technique provides for increasedmarketing and demographic data accuracy and further reduces instances offraud or abuse of Virtual Coupons™.

[0154]FIG. 9 is a simplified diagram illustrating the step in theoperation of the SELLECTSOFT™ software in a consumer's computer. Asillustrated in FIG. 9, the process starts at START step 901. At step902, the consumer loads the SELLECTSOFT™ software into his or hercomputer memory and executes the program. In step 903, a screen mayprompt the consumer to call a 1-800 voice or audiotext number to providedemographic and identification information and receive a validationnumber. As part of the validation process, the consumer may provide theserial number of the SELLECTSOFT™ diskette to the 1-800 operator oraudiotext system.

[0155] In step 904, a validation number provided by the 1-800 operatoror audiotext system may be entered into the consumer's computer, alongwith name and address information and the SELLECTSOFT™ diskette 310serial number, as illustrated in FIG. 11. The validation number may thenbe combined with the SELLECTSOFT™ serial number to produce a codenumber. This unique code number may then be compared with a code numberstored on the SELLECTSOFT™ diskette as illustrated in step 905. If amatch occurs, processing passes to step 907 and a consumer may selectVirtual Coupons™ for printing. A list of Virtual Coupons™ may then beprinted as illustrated in step 908. When the list of Virtual Coupons™has been printed, the consumer may return to step 907 to selectadditional Virtual Coupons™, or terminate the program.

[0156] If the code numbers do not match, as determined in step 905,processing passes to step 906 and an error message is displayed. In step909, a determination is made whether a predetermined number of errorshave occurred (e.g., 3). If more than the predetermined number of errorshave occurred, processing may be halted and an additional error messagedisplayed as illustrated in step 910. Otherwise, processing may returnto step 903 and the consumer may again be prompted to call the 1-800number. This retry scheme may allow for user mishap while preventing anunlimited number of retrys to reduce or prevent fraud.

[0157] While the preferred embodiment and various alternativeembodiments of the invention have been disclosed and described in detailherein, it may be apparent to those skilled in the art that variouschanges in form and detail may be made therein without departing fromthe spirit and scope thereof.

What is claimed is:
 1. A computer kiosk arranged for generating coupons,said kiosk comprising: means for accessing a database, said databaseincluding a list of consumer names, consumer identification data andvirtual coupon data corresponding to each consumer name; data entrymeans for entering consumer identification data for a consumer usingsaid kiosk; first generating means for printing a coupon, in response toa command input by a consumer, based upon said virtual coupon datacorresponding to said consumer identification data of said consumerusing said computer kiosk; and processing means, coupled to said database, for receiving a request by said consumer using said kiosk forredemption of a selected virtual coupon corresponding to said consumeridentification data, and for generating redemption data indicating saidselected virtual coupon has been redeemed.
 2. The computer kiosk ofclaim 1, wherein said means for accessing comprise a keyboard.
 3. Thecomputer kiosk of claim 2, wherein said means for accessing furthercomprise means for transmitting data to and from a remote computernetwork.
 4. The computer kiosk of claim 1 wherein said processing meanscomprises: means for counting the number of times a consumer redeemed aparticular virtual coupon, and fraud indication means for indicatingfraud if the number of times a virtual coupon is deemed by the consumerexceeds a predetermined amount.
 5. The computer kiosk of claim 4,wherein the consumer identification data is imprinted on a selectedcoupon as a bar code.
 6. The computer kiosk of claim 3, wherein saidprocessing means retrieves virtual coupon data from said remote database.
 7. The computer kiosk of claim 1, wherein said data entry meanscomprise a computer diskette.
 8. The computer kiosk of claim 3, whereinsaid computer diskette contains data from said remote computer networkentered on said computer diskette prior to use of said computer kiosk.